The Usefulness of the Scoreboard of the Macroeconomic Imbalances Procedure in the European Union: Potentials for Reform

Abstract:

Due to the financial crises in several EU member states, the EU has constructed a scoreboard of economic indicators to be used as an early warning system; future financial crises must be revealed at an earlier stage. The new scoreboard follows a ‘one size fits all’ approach, but research shows that country specifics makes early warning systems more accurate if they allow for different thresholds.

In this analysis, Tobias Knedlik illustrates the advantage of more specific early warning systems for different country groups within the European Union.

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